Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2019

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Summary of Movement of Intangible Assets and That of Their Related Accumulated Amortization

The movement in intangible assets and the related accumulated amortization as of December 31, 2017, 2018 and 2019 is as follows:

	Goodwill			Trade- marks			Concession rights			Contractual relations with clients			Software and development costs			Costs of development of wells			Land use rights			Other assets			Total
At January 1, 2017
Cost		205,195			109,511			844,213			95,127			60,607			342,100			13,288			37,917			1,707,958
Accumulated amortization and impairment		(60,675	)		(15,845	)		(326,453	)		(62,316	)		(40,586	)		(233,378	)		—			(8,419	)		(747,672	)
Net cost		144,520			93,666			517,760			32,811			20,021			108,722			13,288			29,498			960,286
Net initial cost		144,520			93,666			517,760			32,811			20,021			108,722			13,288			29,498			960,286
Additions		—			—			38,156			5,274			3,330			49,698			—			20,832			117,290
Capitalization of interest		—			—			26,015			—			—			—			—			—			26,015
Deconsolidation, net		(3,524	)		—			(17,354	)		—			(21	)		—			—			(2,767	)		(23,666	)
Transfers from assets under construction		—			—			(11,217	)		—			2,761			5,008			—			3,617			169
Derecognition - net		—			—			(537	)		—			(1,572	)		—			—			(355	)		(2,464	)
Amortization		—			—			(24,609	)		(4,189	)		(8,091	)		(46,695	)		—			(2,973	)		(86,557	)
Impairment loss		(20,068	)		(29,541	)		—			—			—			—			—			—			(49,609	)
Translations adjustments		(4,124	)		975			13			369			1,196			—			—			177			(1,394	)
Net final cost		116,804			65,100			528,227			34,265			17,624			116,733			13,288			48,029			940,070
At December 31, 2017
Cost		197,547			110,486			841,229			98,607			59,913			396,806			13,288			59,324			1,777,200
Accumulated amortization and impairment		(80,743	)		(45,386	)		(313,002	)		(64,342	)		(42,289	)		(280,073	)		—			(11,295	)		(837,130	)
Net cost		116,804			65,100			528,227			34,265			17,624			116,733			13,288			48,029			940,070
At January 1, 2018
Cost		197,547			110,486			841,229			98,607			59,913			396,806			13,288			59,324			1,777,200
Accumulated amortization and impairment		(80,743	)		(45,386	)		(313,002	)		(64,342	)		(42,289	)		(280,073	)		—			(11,295	)		(837,130	)
Net cost		116,804			65,100			528,227			34,265			17,624			116,733			13,288			48,029			940,070
Net initial cost		116,804			65,100			528,227			34,265			17,624			116,733			13,288			48,029			940,070
Additions		—			—			23,803			—			3,267			68,544			—			5,067			100,681
Capitalization of interest		—			—			3,361			—			—			—			—			—			3,361
Desconsolidation, net		(20,086	)		(8,358	)		(22,758	)		(8,909	)		(10,153	)		—			—			(1,863	)		(72,127	)
Transfers from assets under construction		—			—			—			—			199			—			—			(199	)		—
Derecognition - cost		—			—			(16	)		—			(1,941	)		(4,126	)		—			—			(6,083	)
Amortization		—			—			(50,776	)		(7,996	)		(5,834	)		(41,930	)		—			(5,536	)		(112,072	)
Translations adjustments		(3,430	)		(4,301	)		199			(303	)		830			—			—			270			(6,735	)
Net final cost		93,288			52,441			482,040			17,057			3,992			139,221			13,288			45,768			847,095
At December 31, 2018
Cost		174,031			97,097			836,254			85,482			16,177			461,224			13,288			58,267			1,741,820
Accumulated amortization and impairment		(80,743	)		(44,656	)		(354,214	)		(68,425	)		(12,185	)		(322,003	)		—			(12,499	)		(894,725	)
Net cost		93,288			52,441			482,040			17,057			3,992			139,221			13,288			45,768			847,095
At January 1, 2019
Cost		174,031			97,097			836,254			85,482			16,177			461,224			13,288			58,267			1,741,820
Accumulated amortization and impairment		(80,743	)		(44,656	)		(354,214	)		(68,425	)		(12,185	)		(322,003	)		—			(12,499	)		(894,725	)
Net cost		93,288			52,441			482,040			17,057			3,992			139,221			13,288			45,768			847,095
Net initial cost		93,288			52,441			482,040			17,057			3,992			139,221			13,288			45,768			847,095
Additions		—			—			26,645			—			3,745			102,022			—			5,212			137,624
Capitalization of interest expenses		—			—			2,725			—			—			—			—			802			3,527
Transfers from assets under construction		—			—			—			—			672			—			—			(672	)		—
Derecognition - net		(930	)		—			—			—			(2,015	)		—			—			(4,106	)		(7,051	)
Amortization		—			—			(49,049	)		(3,682	)		(5,308	)		(43,552	)		—			(3,687	)		(105,278	)
Impairment loss		(33,089	)		—			(3,213	)		—			—			—			(2,468	)		—			(38,770	)
Impairment reversal		—			20,676			—			—			—			—			—			—			20,676
Translations adjustments		(1,902	)		(2,471	)		—			(114	)		(21	)		—			—			—			(4,508	)
Reclassifications		—			49			(15,198	)		(12,760	)		19,410			(3,717	)		—			12,216			—
Net final cost		57,367			70,695			443,950			501			20,475			193,974			10,820			55,533			853,315
At December 31, 2019
Cost		93,887			73,836			710,290			72,810			48,073			558,530			13,288			113,057			1,683,771
Accumulated amortization and impairment		(36,520	)		(3,141	)		(266,340	)		(72,309	)		(27,598	)		(364,556	)		(2,468	)		(57,524	)		(830,456	)
Net cost		57,367			70,695			443,950			501			20,475			193,974			10,820			55,533			853,315

Summary of Goodwill Allocated to Cash-Generating Units (CGU)

At December 31, the goodwill of the cash-generating units (CGUs) is distributed as follows:

	2017		2018		2019
Engineering and construction		75,051		71,621		36,632
Electromechanical		20,737		20,737		20,735
Mining and construction services		13,366		—		—
IT equipment and services		930		930		—
Telecommunications services		6,720		—		—
		116,804		93,288		57,367

Summary of Major Assumptions Used by the Group in Determining the Fair Value Less Cost of Disposal

The main assumptions used by the Group to determine fair value less disposal costs and value in use are as follows:

	Engineering and construction			Electro- mechanical
	%			%
2017
Gross margin		9.50	%		8.00	%
Terminal growth rate		3.00	%		2.00	%
Discount rate		11.18	%		11.48	%
2018
Gross margin		12.67	%		7.63	%
Terminal growth rate		3.00	%		2.00	%
Discount rate		12.55	%		11.44	%
2019
Gross margin		12.43	%		8.86	%
Terminal growth rate		3.00	%		2.00	%
Discount rate		11.83	%		11.40	%

The main assumptions used by the Group to determine fair value less cost of sales are as follows:

	Engineering and construction
	Morelco			Vial y Vives- DSD
	%			%
2017
Average revenue growth rate		9.60	%		25.00	%
Terminal growth rate		3.00	%		4.00	%
Discount rate		11.18	%		14.80	%
2018
Average revenue growth rate		12.25	%		19.58	%
Terminal growth rate		3.00	%		3.00	%
Discount rate		12.55	%		14.00	%
2019
Average revenue growth rate		5.70	%		19.58	%
Terminal growth rate		3.00	%		2.00	%
Discount rate		11.83	%		14.12	%

Summary of Amortization of Intangibles

Amortization of intangibles is broken down in the consolidated income statement as follows:

	2017		2018		2019
Cost of sales and services (Note 26)		67,381		98,318		99,589
Administrative expenses (Note 26)		3,002		4,856		5,689
(+) Amortization discontinued operations		16,174		8,898		—
		86,557		112,072		105,278

Disclosure Of Detailed Information About Concessions

As of December 31, mainly include intangibles of Norvial S.A.:

	2018		2019
EPC Contract		70,133		62,319
Construction of the second tranch of the “Ancon- Huacho-Pativilca” highway		12,463		4,809
Cost of capitalized indebtedness at effective interest rates between 7.14% and 8.72%		9,836		950
Road improvement		15,558		14,449
Implementation for road safety		6,283		8,152
Work capitalization of second roadway		310,417		314,614
Disbursements for land adquisition		4,757		4,233
Other intangible assets contracted for the delivery process		6,775		7,477
Total Norvial S.A.		436,222		417,003
Other concessions		45,818		26,947
		482,040		443,950